Tax Deadline & Market Update

TAX DEADLINE

(3/18/20)

Details on the payment extension issued by the IRS:

  • ● April 15th, 2020 remains the deadline for filing taxes. 
    UPDATE 11:30am 3/20/20: The Treasury Secretary recently announced the federal filing date will be July 15th, 2020.
  • ● There has been a 90 day extension (to July 15th, 2020) for all federal payments normally due on April 15th, 2020.  It would include the first quarter estimated tax payment.
  • ● At this time, Nebraska has not extended the time to file or pay taxes.  However, other states have begun issuing extensions for time to file and pay.  We will keep you informed as developments occur with the state tax deadlines.  UPDATE 3/23/20: It was announced the filing and payment deadline will be July 15th, 2020.

Please talk to your tax preparer if you have questions on any of these deadlines.  McMill CPAs & Advisors will issue additional communication if any of these deadlines change. 

IRS Announcement


MARKET VOLATILITY

The stock market can be compared to a roller coaster ride. It’s slow and gradual going up, but when it starts to drop, it happens quickly and your stomach turns flips.

We are in a period of volatility right now. The volatility we are seeing right now is actually a sign that the markets are doing what they always do: translating rapidly unfolding information into stock prices. In recent days, the increase in volatility in the stock market has resulted in renewed anxiety for many investors. While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing.

Here are three good things to remember as the markets swoop and dive.
1. We have survived similar events before.

  • ● 2002 it was SARS
  • ● 2009 it was H1N1
  • ● 2012 it was MERS

Each time, the markets reacted to the uncertainty. This virus will peak and decline in the US just as it is already doing in China. When it does, we will see the markets turn around, as they always have.


2. Every time a share of stock is sold, a buyer believes that purchasing that share at that price represents an opportunity to make a profit in the future. People who bought stocks today did so expecting to make money.

3. For long-term investors, reacting emotionally to volatile markets may be more detrimental to portfolio performance than the drawdown itself. Research proves it time and time again: emotional reactions to market swings do not advance your long-term financial goals. 

We could repeat, “don’t panic,” and “wash your hands”. Instead, let’s focus on this suggestion: Stay Diversified, Stay YOUR Course!


COVID-19 NEWS

Update from Tom Hanks in quarantine March 17, 2020. Tom and his wife were diagnosed with COVID-19 and have been released from the hospital in Australia.

“Hey folks. Good News: One week after testing Positive, in self-isolation, the symptoms are much the same. No fever but the blahs. Folding the laundry and doing the dishes leads to a nap on the couch. Bad news: My wife @ritawilson has won 6 straight hands of Gin Rummy and leads by 201 points. But I have learned not to spread my Vegemite so thick. I traveled here with a typewriter, one I used to love. We are all in this together. Flatten the curve. Hanx”

China has now closed all temporary hospitals in the central city of Wuhan, the epicenter of a coronavirus outbreak, a news website backed by the Shanghai government, the Paper, said on its official Twitter account on Tuesday.

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Apple has reopened all of its Chinese stores, a month after shutting them down amid the coronavirus outbreak.

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One of the reasons Italy was hit so hard, experts say, is because they have the oldest population in Europe, and the second-oldest population on Earth (after Japan)

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